Strategic Group Mapping Read the overview below and answer the questions that follow. A strategic group consists of industry members with similar competitive approaches and positions in the market. Companies in the same strategic group can resemble one another in several ways: They may have comparable product- line breadth, sell in the same price/quality range, emphasize the same distribution channels, use essentially the same product attributes to appeal to similar types of buyers, depend on identical technological approaches, or offer buyers similar services and technical assistance. Illustration Capsule 3.1 presents a two-dimensional diagram reflecting the positioning of rivals in the U.S. casual dining industry. Strategic group mapping is a valuable tool for understanding the similarities, differences, strengths, and weaknesses inherent in the market positions of rival companies. Rivals in the same or nearby strategic groups cautiously, if at all, look for opportunities in other industries. A competitively weak company in an unattractive industry may see its best option as finding a buyer, perhaps a rival, to acquire its business. The lesson of strategic group mapping is that some positions on the map are more favorable than others. The profit potential of different strategic groups varies because of strengths and weaknesses in each group's market position. Often, Industry competitive pressures and change drivers favor some strategic groups and hurt others. Case: The strategic group map presented here and in Illustration Capsule 31 displays the comparative market positions of companies in the U.S. casual dining industry. Maggiano's Little Italy PF. Chang's High Hard Rock Caf, Outback Steakhouse BJ's Restaurant & Brewery, The Cheesecake Factory. Carrabba's Italian Grille Price/Service/Restaurant Ambiance Moderate California Olive Garden Pizza Longhorn Kitchen Steakhouse Panera Breed Company Cracker Barrel, Red Lobster, Golden Corral Corner Bakery Cafe. Atlanta Bread Company Applebee's, Chili's On the Border, TGI Friday's Jason's Deli McAlister's Dell, Fazoli's Five Guys, Buffalo Wild Wings, Firehouse Subs, Moe's Southwest Grill Low International Few U.S. Locations Many U.S. Locations Geographic Coverage Note: Circles are drawn roughly proportional to the sizes of the chains, based on revenues. The following assignment questions require your analysis of the strategic group map. Hint: Use the five-forces model to help determine competitive pressures from the different competitive strategic groups. Hint: Use the five-forces model to help determine competitive pressures from the different competitive strategic groups. Between which two strategic groups is competition strongest? Multiple Choice Olive Garden, Longhorn Steakhouse AND Panera Bread Company Hard Rock Cafe, Outback Steakhouse AND Maggiano's Little Italy, P.F. Chang's Cracker Barrel, Red Lobster Golden Corral AND Five Guys, Buffalo Wild Wings, Firehouse Subs, Moe's Southwest Grill Applebee's, Chills, On the Border, T.GI Fridays AND California Pizza Kitchen Jason's Dell, McAlister's Dell, Fazoli's AND California Pizza Kitchen